Exhibit 99.1
TRIMAS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
On June 30, 2015, TriMas Corporation (“TriMas” or the “Company”) completed the previously announced spin-off of its Cequent businesses, creating a new independent publicly traded company, Horizon Global Corporation (“Horizon”). At the close of business on June 30, 2015, holders of TriMas common stock as of the record date on June 25, 2015, received two shares of Horizon common stock for every five shares of TriMas common stock held.
The following unaudited pro forma consolidated financial information is based on the historical consolidated financial information of TriMas, which is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, adjusted to reflect the spin-off of Horizon. The unaudited pro forma consolidated income statements for the three months ended March 31, 2015 and for the years ended December 31, 2014, 2013 and 2012 have been prepared to illustrate the effects of the spin-off as if it occurred on January 1, 2012. The unaudited pro forma consolidated balance sheet as of March 31, 2015 has been prepared to illustrate the effects of the spin-off of Horizon as if it occurred on March 31, 2015.
The unaudited pro forma consolidated financial information is presented for information purposes only and is not necessarily indicative of what the Company’s consolidated financial position or results of operations actually would have been had the spin-off been completed at the dates presented. In addition, the information presented herein does not claim to project the future financial position or operating results of the Company. The unaudited pro forma consolidated financial statements should be read in conjunction with the Company’s historical financial statements, including the notes thereto, as well as the accompanying notes to the unaudited pro forma financial statements.
1
TriMas Corporation
Pro Forma Consolidated Statement of Income
Three Months Ended March 31, 2015
| (Unaudited, dollars in thousands, except per share amounts) | ||||||||||||||||
| As reported (a) | Distribution of Horizon (b) | Other | Pro Forma | |||||||||||||
Net sales | $ | 366,490 | $ | (142,360 | ) | $ | — | $ | 224,130 | |||||||
Cost of sales | (268,270 | ) | 107,060 | — | (161,210 | ) | ||||||||||
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Gross profit | 98,220 | (35,300 | ) | — | 62,920 | |||||||||||
Selling, general and administrative expenses | (70,720 | ) | 30,820 | — | (39,900 | ) | ||||||||||
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Operating profit | 27,500 | (4,480 | ) | — | 23,020 | |||||||||||
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Other expense, net: | ||||||||||||||||
Interest expense | (4,670 | ) | 120 | 900 | (c) | (3,650 | ) | |||||||||
Other expense, net | (2,570 | ) | 1,250 | — | (1,320 | ) | ||||||||||
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Other expense, net | (7,240 | ) | 1,370 | 900 | (4,970 | ) | ||||||||||
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Income from continuing operations before income tax expense | 20,260 | (3,110 | ) | 900 | 18,050 | |||||||||||
Income tax expense | (6,280 | ) | 620 | (340 | )(d) | (6,000 | ) | |||||||||
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Net income from continuing operations | $ | 13,980 | $ | (2,490 | ) | $ | 560 | $ | 12,050 | |||||||
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Basic earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.31 | $ | 0.27 | ||||||||||||
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Weighted average common shares—basic | 44,997,961 | 44,997,961 | ||||||||||||||
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Diluted earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.31 | $ | 0.27 | ||||||||||||
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Weighted average common shares—diluted | 45,400,843 | 45,400,843 | ||||||||||||||
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See accompanying notes to unaudited pro forma combined financial statements.
2
TriMas Corporation
Pro Forma Consolidated Statement of Income
Twelve Months Ended December 31, 2014
| (Unaudited, dollars in thousands, except per share amounts) | ||||||||||||||||
| As Reported (a) | Distribution of Horizon (b) | Other | Pro Forma | |||||||||||||
Net sales | $ | 1,499,080 | $ | (611,780 | ) | $ | — | $ | 887,300 | |||||||
Cost of sales | (1,114,140 | ) | 463,850 | — | (650,290 | ) | ||||||||||
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Gross profit | 384,940 | (147,930 | ) | — | 237,010 | |||||||||||
Selling, general and administrative expenses | (255,880 | ) | 108,590 | — | (147,290 | ) | ||||||||||
Net loss on dispositions of property and equipment | (4,510 | ) | 740 | (3,770 | ) | |||||||||||
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Operating profit | 124,550 | (38,600 | ) | — | 85,950 | |||||||||||
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Other expense, net: | ||||||||||||||||
Interest expense | (15,020 | ) | 1,400 | 3,800 | (c) | (9,820 | ) | |||||||||
Debt financing and extinguishment expenses | (3,360 | ) | — | (3,360 | ) | |||||||||||
Other expense, net | (6,570 | ) | 2,470 | — | (4,100 | ) | ||||||||||
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Other expense, net | (24,950 | ) | 3,870 | 3,800 | (17,280 | ) | ||||||||||
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Income from continuing operations before income tax expense | 99,600 | (34,730 | ) | 3,800 | 68,670 | |||||||||||
Income tax expense | (32,870 | ) | 11,810 | (1,430 | )(d) | (22,490 | ) | |||||||||
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Income from continuing operations including noncontrolling interest | 66,730 | (22,920 | ) | 2,370 | 46,180 | |||||||||||
Less: Net income attributable to noncontrolling interests | 810 | — | — | 810 | ||||||||||||
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Net income from continuing operations attributable to TriMas | $ | 65,920 | $ | (22,920 | ) | $ | 2,370 | $ | 45,370 | |||||||
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Basic earnings per share: | ||||||||||||||||
Continuing operations attributable to TriMas | $ | 1.47 | $ | 1.01 | ||||||||||||
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Weighted average common shares—basic | 44,881,925 | 44,881,925 | ||||||||||||||
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Diluted earnings per share: | ||||||||||||||||
Continuing operations attributable to TriMas | $ | 1.46 | $ | 1.00 | ||||||||||||
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Weighted average common shares—diluted | 45,269,409 | 45,269,409 | ||||||||||||||
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See accompanying notes to unaudited pro forma combined financial statements.
3
TriMas Corporation
Pro Forma Consolidated Statement of Income
Twelve Months Ended December 31, 2013
| (Unaudited, dollars in thousands, except per share amounts) | ||||||||||||||||
| As Reported (a) | Distribution of Horizon (b) | Other | Pro Forma | |||||||||||||
Net sales | $ | 1,388,600 | $ | (588,890 | ) | $ | — | $ | 799,710 | |||||||
Cost of sales | (1,037,540 | ) | 463,880 | — | (573,660 | ) | ||||||||||
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Gross profit | 351,060 | (125,010 | ) | — | 226,050 | |||||||||||
Selling, general and administrative expenses | (243,230 | ) | 104,690 | — | (138,540 | ) | ||||||||||
Net gain on dispositions of property and equipment | 11,770 | (2,070 | ) | 9,700 | ||||||||||||
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Operating profit | 119,600 | (22,390 | ) | — | 97,210 | |||||||||||
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Other expense, net: | ||||||||||||||||
Interest expense | (18,330 | ) | 1,210 | 5,400 | (c) | (11,720 | ) | |||||||||
Debt financing and extinguishment expenses | (2,460 | ) | — | (2,460 | ) | |||||||||||
Other expense, net | (1,720 | ) | (1,610 | ) | — | (3,330 | ) | |||||||||
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Other expense, net | (22,510 | ) | (400 | ) | 5,400 | (17,510 | ) | |||||||||
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Income from continuing operations before income tax expense | 97,090 | (22,790 | ) | 5,400 | 79,700 | |||||||||||
Income tax expense | (18,140 | ) | 1,950 | (2,030 | )(d) | (18,220 | ) | |||||||||
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Income from continuing operations including noncontrolling interest | 78,950 | (20,840 | ) | 3,370 | 61,480 | |||||||||||
Less: Net income attributable to noncontrolling interests | 4,520 | — | — | 4,520 | ||||||||||||
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Net income from continuing operations attributable to TriMas | $ | 74,430 | $ | (20,840 | ) | $ | 3,370 | $ | 56,960 | |||||||
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Basic earnings per share: | ||||||||||||||||
Continuing operations attributable to TriMas | $ | 1.82 | $ | 1.39 | ||||||||||||
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Weighted average common shares—basic | 40,926,257 | 40,926,257 | ||||||||||||||
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Diluted earnings per share: | ||||||||||||||||
Continuing operations attributable to TriMas | $ | 1.80 | $ | 1.38 | ||||||||||||
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Weighted average common shares—diluted | 41,395,706 | 41,395,706 | ||||||||||||||
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See accompanying notes to unaudited pro forma combined financial statements.
4
TriMas Corporation
Pro Forma Consolidated Statement of Income
Twelve Months Ended December 31, 2012
| (Unaudited, dollars in thousands, except per share amounts) | ||||||||||||||||
| As Reported (a) | Distribution of Horizon (b) | Other | Pro Forma | |||||||||||||
Net sales | $ | 1,267,510 | $ | (528,960 | ) | $ | — | $ | 738,550 | |||||||
Cost of sales | (925,090 | ) | 398,290 | — | (526,800 | ) | ||||||||||
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Gross profit | 342,420 | (130,670 | ) | — | 211,750 | |||||||||||
Selling, general and administrative expenses | (214,630 | ) | 91,070 | — | (123,560 | ) | ||||||||||
Net gain on dispositions of property and equipment | 280 | (70 | ) | 210 | ||||||||||||
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Operating profit | 128,070 | (39,670 | ) | — | 88,400 | |||||||||||
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Other expense, net: | ||||||||||||||||
Interest expense | (35,800 | ) | 1,060 | 7,000 | (c) | (27,740 | ) | |||||||||
Debt financing and extinguishment expenses | (46,810 | ) | — | (46,810 | ) | |||||||||||
Other expense, net | (2,970 | ) | 1,210 | — | (1,760 | ) | ||||||||||
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Other expense, net | (85,580 | ) | 2,270 | 7,000 | (76,310 | ) | ||||||||||
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Income from continuing operations before income tax expense | 42,490 | (37,400 | ) | 7,000 | 12,090 | |||||||||||
Income tax expense | (6,060 | ) | 10,840 | (2,630 | )(d) | 2,150 | ||||||||||
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Income from continuing operations including noncontrolling interest | 36,430 | (26,560 | ) | 4,370 | 14,240 | |||||||||||
Less: Net income attributable to noncontrolling interests | 2,410 | — | — | 2,410 | ||||||||||||
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Net income from continuing operations attributable to TriMas | $ | 34,020 | $ | (26,560 | ) | $ | 4,370 | $ | 11,830 | |||||||
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Basic earnings per share: | ||||||||||||||||
Continuing operations attributable to TriMas | $ | 0.90 | $ | 0.32 | ||||||||||||
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Weighted average common shares—basic | 37,520,935 | 37,520,935 | ||||||||||||||
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Diluted earnings per share: | ||||||||||||||||
Continuing operations attributable to TriMas | $ | 0.89 | $ | 0.31 | ||||||||||||
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Weighted average common shares—diluted | 37,949,021 | 37,949,021 | ||||||||||||||
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See accompanying notes to unaudited pro forma combined financial statements.
5
TriMas Corporation
Pro Forma Consolidated Balance Sheet
As of March 31, 2015
| (Unaudited, dollars in thousands) | ||||||||||||||||
| As Reported (a) | Distribution of Horizon (b) | Other | Pro Forma | |||||||||||||
| Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 23,730 | $ | (5,150 | ) | $ | 14,500 | (e) | $ | 33,080 | ||||||
Receivables, net | 220,380 | (82,620 | ) | — | 137,760 | |||||||||||
Inventories | 301,440 | (129,510 | ) | — | 171,930 | |||||||||||
Deferred income taxes | 28,720 | (4,810 | ) | — | 23,910 | |||||||||||
Prepaid expenses and other current assets | 17,630 | (7,020 | ) | 10,000 | (f) | 20,610 | ||||||||||
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Total current assets | 591,900 | (229,110 | ) | 24,500 | 387,290 | |||||||||||
Property and equipment, net | 228,170 | (52,460 | ) | — | 175,710 | |||||||||||
Goodwill | 461,700 | (5,470 | ) | — | 456,230 | |||||||||||
Other intangibles, net | 354,840 | (62,880 | ) | — | 291,960 | |||||||||||
Other assets | 37,130 | (10,130 | ) | — | 27,000 | |||||||||||
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Total assets | $ | 1,673,740 | $ | (360,050 | ) | $ | 24,500 | $ | 1,338,190 | |||||||
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| Liabilities and Shareholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Current maturities, long-term debt | $ | 23,590 | $ | (200 | ) | $ | — | $ | 23,390 | |||||||
Accounts payable | 174,710 | (78,970 | ) | — | 95,740 | |||||||||||
Accrued liabilities | 90,730 | (35,940 | ) | — | 54,790 | |||||||||||
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Total current liabilities | 289,030 | (115,110 | ) | — | 173,920 | |||||||||||
Long-term debt | 647,910 | (240 | ) | (200,000 | )(e) | 447,670 | ||||||||||
Deferred income taxes | 54,250 | (7,980 | ) | — | 46,270 | |||||||||||
Other long-term liabilities | 84,030 | (22,330 | ) | — | 61,700 | |||||||||||
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Total liabilities | 1,075,220 | (145,660 | ) | (200,000 | ) | 729,560 | ||||||||||
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Preferred stock | — | — | — | — | ||||||||||||
Common stock | 450 | — | — | 450 | ||||||||||||
Paid-in capital | 807,400 | (212,140 | ) | 224,500 | (e)(f) | 819,760 | ||||||||||
Accumulated deficit | (212,870 | ) | — | — | (212,870 | ) | ||||||||||
Accumulated other comprehensive income | 3,540 | (2,250 | ) | — | 1,290 | |||||||||||
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Total shareholders’ equity | 598,520 | (214,390 | ) | 224,500 | 608,630 | |||||||||||
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Total liabilities and shareholders’ equity | $ | 1,673,740 | $ | (360,050 | ) | $ | 24,500 | $ | 1,338,190 | |||||||
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See accompanying notes to unaudited pro forma combined financial statements.
6
TRIMAS CORPORATION
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
| (a) | The as reported column in the unaudited pro forma consolidated financial information reflects TriMas’ historical financial statements from continuing operations for the periods presented and do not reflect any adjustments related to the spin-off. |
| (b) | The information in the distribution of Horizon column in the unaudited pro forma consolidated financial information was derived from the Company’s accounting records. |
| (c) | Reflects the reduction of interest expense associated with the refinancing of the Company’s debt subsequent to the receipt of the $214.5 million cash distribution from Horizon. Interest savings were calculated based upon a $200.0 million reduction in debt for each of the periods presented at the Company’s weighted average interest rate for that period. |
| (d) | Reflects the tax effect of the pro forma adjustments at the applicable combined statutory U.S. federal and state income tax rates of 37.5% for the years ended December 31, 2014, 2013 and 2012 and for the three months ended March 31, 2015. |
| (e) | Reflects the receipt of a $214.5 million cash distribution from Horizon, of which $200.00 million was initially used to reduce the Company’s outstanding debt balance. |
| (f) | In connection with the tax sharing agreement between Horizon and TriMas (see exhibit 10.1 contained within this 8-K filing), Horizon agrees to pay TriMas an amount not to exceed $10.0 million related to its income tax liabilities for the year ended December 31, 2014 and the six months ended June 30, 2015 that TriMas previously remitted. As TriMas has already remitted tax payments in excess of $10.0 million on behalf of Horizon, TriMas has recorded a $10.0 million receivable from Horizon as a pro forma adjustment. |
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